Indian Journal of Industrial Relations: Economics & Social Dev.

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Impact of Women Directors &Board Independence on Family Firm Performance: Evidence from India


Affiliations
1 Doctoral Scholar, India
2 Associate Professor, Shailesh J Mehta School of Management, Indian Institute of Technology Bombay, Mumbai, India
     

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After the announcement of mandatory quota in 2013 for women directors and independent directors on board, the Indian listed companies have undergone tremendous changes in their board structures. This study undertakes a pre-announcement and post-announcement comparative analysis of the relationship between women directors and firm performance and independent directors and family firm performance measured by return on assets (ROA) and Tobin’s Q, by employing a multiple linear regression on a sample of 163 publicly listed family firms over a 10year period. Findings reveal that women directors have a negative effect on ROA and a positive effect on Tobin’s Q, while independent directors have a positive effect on ROA and mixed effects on Tobin’s Q.



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  • Impact of Women Directors &Board Independence on Family Firm Performance: Evidence from India

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Authors

Juili Milind Ballal
Doctoral Scholar, India
Varadraj Bapat
Associate Professor, Shailesh J Mehta School of Management, Indian Institute of Technology Bombay, Mumbai, India

Abstract


After the announcement of mandatory quota in 2013 for women directors and independent directors on board, the Indian listed companies have undergone tremendous changes in their board structures. This study undertakes a pre-announcement and post-announcement comparative analysis of the relationship between women directors and firm performance and independent directors and family firm performance measured by return on assets (ROA) and Tobin’s Q, by employing a multiple linear regression on a sample of 163 publicly listed family firms over a 10year period. Findings reveal that women directors have a negative effect on ROA and a positive effect on Tobin’s Q, while independent directors have a positive effect on ROA and mixed effects on Tobin’s Q.



References